Solicitors Error with completion Statement

davidmcn

And if your solicitor had asked you for the correct amount in the first place - how would you have paid for your furniture / appliances / Christmas?

KiKi

stokeingy wrote: »

judging me that i knew the figures were 995 is harsh. never been through a mortgage before. i sent them a mail on receipt of the first incorrect statement with my calculation. they sent another statement out with a different amount i assumed i was wrong as i dont know how this works. turns out i was right. so they cause the problem not me.

fyi those asking the deposit was 23k, the sol fees and search fees etc were included on the statement the issue was they expected to get the 995 arrangement fee that they were never getting. i did not know how this worked.

came on here for a little advice not to get judged and slated etc. thanks to those who did provide advice.

Thing is, OP, you did know - despite not being an expert in mortgages and purchases - that the first statement was wrong. You went through it in detail, saw the errors, and refused to accept the too-high invoice, and you corrected them, with your own calculation that you knew was right.

But then they sent you a statement that was less than you knew it should have been. You claim that you couldn't have known it was wrong because you're not an expert in mortgages and purchases, and so accepted their figures that you knew were less than yours, despite the fact that you'd agreed with all the other elements except the ones you challenged on the first invoice.

So that just doesn't ring true!

I'd bet anything that you were just so pleased they were sending an invoice that was even less than you'd thought, that you went along with it. I get it - I'd be very tempted to do the same!! But really, you know you owe it, so just pay it. Much easier.

The fact that Christmas is coming and you bought furniture etc - not their problem, I'm afraid.

Suck it up, pay it out and enjoy your new home without it hanging over your head.
KiKi

Angie_B

stokeingy wrote: »

ok so the 995 arrangement fee fro tsb was included in the mortgage thats where the probem is, the solicitors expected to receive 207995 when they actually got 207000.

If the fee was included in the mortgage, why did the solicitors not receive it?

Thrugelmir

Angie_B wrote: »

If the fee was included in the mortgage, why did the solicitors not receive it?

The fee is the lenders own. Therefore deducted at the point of drawn down.

Angie_B

Thrugelmir wrote: »

The fee is the lenders own. Therefore deducted at the point of drawn down.

I'm still somewhat confused as to where the issue has come from though?

Surely on the completion statement the solicitor should basically list everything that the OP needs to pay to them, i.e. the solicitor's fees, the searches, SDLT and deposit.

If the mortgage fee has been added to the mortgage and is deducted by the mortgage lender at point of drawdown, then why is it featuring on the completion statement at all? I would understand if it were the other way around and the solicitors thought the fee was being added to the mortgage but wasn't, and they were therefore £995 down because actually the OP needed to pay this upfront. But how do you end up a mortgage fee down, if you were never paying the mortgage fee upfront in the first place?

Maybe I am just being slow tonight... :think:

davidmcn

Angie_B wrote: »

If the mortgage fee has been added to the mortgage and is deducted by the mortgage lender at point of drawdown, then why is it featuring on the completion statement at all?

Because (probably) the solicitor looked at the mortgage offer which said the OP was borrowing £207,995, and thought that was the amount they would be getting, so put it in the statement. Hidden somewhere else in the offer may (or may not) have been the information that £995 was going to be deducted by the lender before they forwarded the balance to the solicitor.

kingstreet

davidmcn wrote: »

Because (probably) the solicitor looked at the mortgage offer which said the OP was borrowing £207,995, and thought that was the amount they would be getting, so put it in the statement. Hidden somewhere else in the offer may (or may not) have been the information that £995 was going to be deducted by the lender before they forwarded the balance to the solicitor.

We had one this week.

NatWest offer shows gross amount, less fees and then net amount. Solicitor read gross amount and used that in completion statement so it ended up £995 out of kilter as they did not enter an accompanying deduction.

As we had issued copies of several illustrations, a factfind, copy of the application and recommendation letter to the applicant and the applicant had also received the mortgage offer and the HTB authority to proceed all showing the "normal" mortgage amount we think we'd done everything we could to ensure the applicant had the tools to be able to check the statement and query it with us or with the solicitor.